A company carries an average annual inventory of $8.3 million if it estimates the cost of capital is 11% so much costs are 7% and risk calls are 12%. What does it cost per year to carry this inventory?
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A company carries an average annual inventory of $8.3 million if it estimates the cost of capital is 11% so much costs are 7% and risk calls are 12%. What does it cost per year to carry this inventory?
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- What does it cost per year to carry this inventory?A firm expects to sell 11,500 units. The expected variable cost per unit is $314 and the expected fixed costs are $647,000. The depreciation expense is $187,000. The sales price is estimated at $850 per unit. The tax rate is 21%. What is the operating cash flow based on this analysis?A new firm expects to generate Sales of $124,900. POINT BLANK has variable costs of $77,500, and fixed costs of $18,000. The per-year depreciation is $4,300 and the tax rate is 35 percent. What is the annual operating cash flow?
- Answer the following lettered questions on the basis of the information in this table: Amount of R&D, $ Millions Expected Rate of Return on R&D, % $ 10 16 20 14 30 12 40 10 50 8 60 6 Instructions: Enter your answer as a whole number. a. If the interest-rate cost of funds is 8 percent, what is this firm's optimal amount of R&D spending? million %24Revenues are currently $1 million and are projected to stay flat. A new inventory management system would cost $40,000, but would reduce inventory by 50%. Inventories are currently 15% of revenues. By how much would the new inventory management system reduce net working capital in each of the first three years of its implementation?A firm is considering a new inventory system that will cost $120,000. The system is expected to generate positive cash flows over the next four years in the amounts of $35,000 in year 1, $55,000 in year 2, $65,000 in year 3, and $40,000 in year 4. The firm’s required rate of return is 9%. What is the payback period of this project? 1.95 years 2.46 years 2.99 years 3.10 years Based on the information from Question 47. What is the net present value (NPV) of the project? $28,830.29 $30,929.26 $36,931.43 $39,905.28 Based on the information from Question 47, what is the internal rate of return (IRR) of this project? 14.03% 17.56% 19.26% 21.78% Based on the information from Question 47, what is the profitability index (PI) of this project? 0.87 1.11 1.31 1.83.
- A factory costs $810,000. You reckon that it will produce an inflow after operating costs of $171,000 a year for 11 years. a. If the opportunity cost of capital is 7%, what is the net present value of the factory?The projected cash flow for the next year for Minesuah Inc. is $125,000, and FCF is expected to grow at a constant rate of 6.8%. If the company's weighted average cost of capital is 15.7%, what is the value of its operations?Dawson Metals is currently operating at 94% of its capacity and has sales of $3.1 million and fixed assets of $2.5 million. How much should the firm budget for fixed asset purchases if sales are projected to increase by 10% next year?
- What is the percentage expected annual rate of return on a $1 million investment for a 25% interest in a company? In 2 years, the company will be acquired for $7 million. The correct answer is 32.3%, please explain the steps fully.Kaler Company has sales of $1,470,000, cost of goods sold of $800,000, other operating expenses of $213,000, average invested assets of $4,700,000, and a hurdle rate of 12 percent. Required: 1. Determine Kaler's return on investment (ROI), investment turnover, profit margin, and residual income. 2. Several possible changes Kaler could face in the upcoming year follow. Determine each scenario's impact on Kaler's ROI and residual income. (Note: Treat each scenario independently.) a. Company sales and cost of goods sold increase by 5 percent. b. Operating expenses increase by $86,000. c. Operating expenses decrease by 20 percent. d. Average invested assets decrease by $415,000. e. Kaler changes its hurdle rate to 9 percent. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 2C Req 2D Req 2E Determine Kaler's return on investment (ROI), investment turnover, profit margin, and residual income. Note: Do not round your intermediate calculations. Enter…Solano Company has sales of $740,000, cost of goods sold of $490,000, other operating expenses of $46,000, average invested assets of $2.200,000, and a hurdle rate of 10 percent. Required: 1. Determine Solano's return on investment (ROI), Investment turnover, profit margin, and residual income. 2. Several possible changes that Solano could face in the upcoming year follow. Determine each scenario's impact on Solano's ROI and residual income. (Note: Treat each scenario independently) a. Company sales and cost of goods sold increase by 30 percent. b. Operating expenses decrease by $10,000. c. Operating expenses increase by 10 percent. d. Average invested assets increase by $420,000. e. Solano changes its hurdle rate to 16 percent. Complete this question by entering your answers in the tabs below. Reg Reg 2A Reg 2n Reg 20 Reg 20 Reg 2 Determine Solano's return on investment (ROI), investment turnover, profit margin, and residual income. (Loss amounts should be indicated with a minus sign.…
